Despite a market of 1.2 billion people, airlines in India are unprofitable due to high costs and cut-throat competition. But Fernandes says AirAsia has studied the market for a long time and "we feel moderately optimistic."

NEW DELHI: New no-frill carrier AirAsia India today said it would launch new flights connecting Jaipur and Chandigarh to Bengaluru from September, marking its entry into North India barely a month after launching operations. It also announced doubling of its Bengaluru-Goa flights from one to two from September five, when Jaipur and Chandigarh services also begin, an airline release said. The airline launched its first flight between Bengaluru and Goa on June 12. To encourage travel on the new sectors, AirAsia India announced all-inclusive limited fares starting from Rs 1,999 from Bengaluru to Jaipur or Chandigarh and Rs 1,299 from Bengaluru to Goa and vice versa. Bookings on these sectors would begin from tomorrow till July 27 for travel between September five and October 25, the statement said. Airline CEO Mittu Chandilya said "there is great potential to expand. We wanted to make sure that we make the right move and get our fares right at the same time." He said that starting of flights to Jaipur and Chandigarh was "a strategic decision since we wanted to accelerate our operations in North, considering the demand for our services. With the addition of new routes, we will ensure that Indians experience a brand new way to fly within the country." AirAsia India also announced the appointment of Globe Air Cargo India as its cargo general sales and services agent. The airline, India's fourth budget carrier, is a 49:30:21 joint venture among Malaysian carrier AirAsia, Tata Sons and Arun Bhatia's Telestra Tradeplace.AirAsia to launch flights to Jaipur, Chandigarh from September - The Economic Times